What is Net Promoter Score?
Net Promoter is a customer loyalty metrics developed and registered by trademark of Fred Reichheld, Bain & Company. This concept was introduced in 2003 by Reichheld in his Harward Business article “The one Number you need to Grow”.
The most vital benefits of this methodology derives from simplifying and communicating the objective of creating more ‘Promoters’ and fewer ‘Detractors’
It is a simplified theory for employees to understand and implement as compared to more complicated, colossal and incomprehensible metrics.
Apart from the above, Patrons claim Net Promoter methodology as an effective tool which can reduce the complexity of implementation and analysis frequently associated with measures of customer satisfaction.
NPS is instrumental in providing a stable measure of business performance that can be compared across business units and even across industries, to gauge changes in customer satisfaction trends over a period of time.
Net Promoter programs requires a robust system infrastructure to support real-time collection, analysis and distribution of customer feedback throughout the enterprise.
1.2. NPS Fundamentals
NPS scores is based on the ability of the customers to answer questions like: “how likely you would recommend this company to a friend or a colleague?”
Customer answers this question using a scale of 0 to 10 (with 0 being the lowest score and 10 being the highest.) Based on how they answer this question, all customers are divided into three categories:
Promoters, Passives, and Detractors.
A promoter (a customer who rates you on 9 or 10) is a dedicated customer, and will always be loyal to your business and its services.
A passive (a customer who rates you 7 or 8) is neutral about your business or service. When enquired about their experience with the company will neither provide good nor bad verdict about your business or services.
A detractor (a customer who rates you 0 to 6) is an unhappy customer. If asked about their experience with your business and its service, the customer will provide negative feedback and will discourage other prospective customers from engaging with your Company
How will this tool help?
This tool has the following features
- Easy addition of survey takers – You can easily add target respondents through excel upload or manual additions
- Set reminders to be sent to respondents – One of challenges in NPS survey shall always be % response recd. You can customize reminders to such potential respondents either through email or SMS. For ex – you can schedule reminder for any specific time or per day.
- Pre-added 4-5 questionnaire for free – Based on our industry experience you shall be provided 4-5 sets of NPS question which you can use or further customize and use.
- Get downloadable reports for responses received-To help you do further data analysis on NPS, get reports in downloadable form.
- Analytics based on the demographic details added by you in the survey- Build predictions and a robust improvement plan based on statistical analysis of the data available in the software.
- On a need basis we can provide consulting on the NPS Strategy as well- Get expert advice from industry experts on the next steps for building NPS Strategy that can benefit the business.